Qualcomm (QCOM) Stock Rockets 12% on $40B Revenue Goal and Meta Partnership

Key Takeaways

• Shares of QCOM climbed more than 12% during pre-market hours following the company’s Investor Day presentation in New York
• The semiconductor firm increased its fiscal 2029 non-mobile revenue projection to $40 billion from a previous $22 billion forecast
• Meta’s Mark Zuckerberg announced a partnership to integrate Qualcomm’s Dragonfly C1000 CPU into Meta’s data center operations
• Azure’s adoption of Qualcomm’s High-Bandwidth Compute technology was confirmed by Microsoft CEO Satya Nadella
• The company completed an all-stock acquisition of AI software company Modular, valued at approximately $3.92 billion

Shares of Qualcomm experienced a significant rally on Thursday morning, climbing from $197.41 at Wednesday’s close to reach $220.76 during pre-market activity—representing an increase exceeding 12%. The surge followed the semiconductor manufacturer’s Investor Day presentation held in New York City on Wednesday night.

QUALCOMM Incorporated, QCOM

The dramatic price movement stemmed from a series of significant announcements that repositioned Qualcomm’s strategic narrative toward AI-powered data centers, moving beyond its core smartphone semiconductor operations.

The most striking figure: Qualcomm increased its fiscal 2029 revenue target for non-handset segments to $40 billion—representing almost a doubling of its prior $22 billion projection.

Breaking down this ambitious goal, the chipmaker projects $15 billion in datacenter revenue, over $14 billion from Internet of Things applications, and $10 billion from automotive solutions by fiscal year 2029. The company also established an adjusted earnings per share objective exceeding $18 for that timeframe, substantially higher than Wall Street’s current consensus estimate of $15.26.

Chief Executive Cristiano Amon informed investors that the organization has been “executing, collecting assets,” and now possesses a “comprehensive portfolio to enter the next phase of the data center.”

Dragonfly C1000 and the Meta Partnership

Central to these announcements is the Dragonfly C1000—a server processor featuring 250 cores, constructed on Qualcomm’s proprietary Oryon architecture and engineered specifically for agentic artificial intelligence applications.

Meta‘s Chief Executive Mark Zuckerberg made a stage appearance to announce a multi-generation partnership for implementing the Dragonfly C1000 throughout Meta’s data center ecosystem. Manufacturing is scheduled to commence during the latter half of 2028.

Satya Nadella, Microsoft’s CEO, also announced that Azure would incorporate Qualcomm’s High-Bandwidth Compute (HBC) technology—a processor design utilizing more affordable memory technology found in mobile devices and personal computers, serving as a cost-effective alternative to the premium high-bandwidth memory components employed by Nvidia.

Modular Acquisition Details

Qualcomm simultaneously revealed its acquisition of Modular, an artificial intelligence software developer, through an all-stock transaction approximating $3.92 billion in value.

Modular’s technology enables artificial intelligence frameworks to operate seamlessly across semiconductors from various manufacturers—including Nvidia and AMD—eliminating the requirement for platform-specific programming. This strategic purchase positions Qualcomm as an open-platform competitor to Nvidia’s prevailing CUDA ecosystem.

The semiconductor company also revealed two custom chip design agreements with undisclosed hyperscale cloud providers, with deployments beginning in late 2026.

These developments coincided with Micron Technology’s announcement of exceptional fiscal third-quarter results, elevating optimism throughout the chip industry and pushing Nasdaq futures higher.

Before the investor event, JPMorgan analysts had added QCOM to their Positive Catalyst Watch list and increased their price target to $265.

Current analyst consensus rates the stock as a Hold, reflecting 19 Hold recommendations, 8 Buy ratings, and 4 Sell opinions, with a mean price target of $187.33. These assessments are expected to undergo revision as financial analysts evaluate Wednesday’s disclosures.

According to GuruFocus, the stock’s fair value stands at $175.34, indicating pre-market trading levels approximately 12.6% above its calculated fundamental value.

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